Amazon has been in the maritime forwarding business since October 2016, according to an \u201cOcean Audit\u201d report cited by the Wall Street Journal. While Amazon has not commented, this latest news fleshes out the e-commerce giant\u2019s multimodal logistics strategy, which includes freight forwarding and direct involvement in trucking, airfreight and, now, seafreight.
\nStarting this month, Amazon began posting rates for new services traditionally handled by global freight companies in China. The services and rates were posted under Beijing Century Joyo Courier Service Co., Amazon\u2019s Chinese subsidiary.
\nIn early 2016, Amazon was granted a license from the U.S. Federal Maritime Commission to operate as a non-vessel operating common carrier (NVOCC) for cargo shipments between China and the United States. In short, Amazon China gained the rights to become a freight forwarder, and the 150 containers shipped so far represent the start.
\nWith maritime forwarding\u2019s reputation as a notoriously complex and time consuming mode of shipping, Amazon\u2019s entry could signal a cheaper, more straightforward option for Chinese shippers. The initial beneficiaries seem to be shippers that sell products through Amazon, but the potential exists for a broader customer base in the future.
\nUnlike it\u2019s aviation strategy, where Amazon leases 767 freighters that are operated on an ACMI basis by Atlas Air Worldwide and ATSG, it\u2019s maritime model follows a more traditional forwarding model wherein the Seattle-based company books space on ocean vessels and then trucks goods between ports and warehouses.
\nThe October 2016 start date also puts Amazon ahead of its Chinese competitor, Alibaba, which announced a partnership with Maersk Line earlier this month that enables customers to reserve space on Maersk ocean vessels via the internet.
\nIn addition to cutting out freight forwarding middlemen and opening pathways to global markets, the Alibaba move was regarded as a shot in the arm to the struggling maritime business that is floundering in a sea of overcapacity and low shipping rates.
\nOn Dec. 22, 2016, Maersk began offering the maritime service on Alibaba\u2019s OneTouch booking website. OneTouch offers advance booking of cargo space on selected routes from eight Chinese ports, with a pre-paid deposit. OneTouch, which was acquired by Alibaba in 2010, targets small- and medium-sized Chinese exporters and allows them to book airfreight and parcel delivery services.
\nThose interested in learning more about air freight in 2017, should join us at Cargo Facts Asia in Shanghai, 25 \u2013 26 April. \u00a0To register, or for more information, go to CargoFactsAsia.com.
\nSource: aircargoworld<\/p>\n","protected":false},"excerpt":{"rendered":"
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